HomeMy WebLinkAboutConfirming Tax Abatement - 1016 Notre Dame Ave J. Nicholas & Diane Entrikin (5yr Real)RES~+LUTION
406~i-10
Passed by the Common Council of the City of South Bend, Indiana
November 8,
20 10
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
November 9, 20 10
Approved and signed by me November 9, 20 10
City Clerk
RESOLUTION NO. ~0~~~~
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
1016 Notre Dame Avenue
AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A
(5) FIVE-YEAR RESIDENTIAL REAL PROPERTY
TAX ABATEMENT FOR
J. NICHOLAS & DIANE ENTRIKIN
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as Residentially Distressed
Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated the area commonly known as 1016
Notre Dane Avenue, South Bend, Indiana, and which is more particularly described as follows:
Lot "A" Frances Street Minor Subdivision a part of the Northeast Quarter of Section
1, Township 37 North, Range 2 East (Being Lot 92 of Plat of Sorins Second
Addition to Lowell, Now the City of South Bend) Portage Township, St. Joseph
County, Indiana.
and this property has Tax Key Number 18-5105-3672, be designated as a Residentially
Distressed Area under the provisions of Indiana Code 6-1.1-12.1 et seQ., and South Bend
Municipal Code Sections 2-76 et sea., and;
WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing
before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for a residentially
distressed area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds that the petition for real
property tax abatement and the Statement of Benef is form meet the requirements of Indiana
Code 6-1.1-12.1 et seq., for tax abatement.
SECTION II. The Common Council hereby determines and finds that the area meets one of the
following conditions as formally established in Ordinance No. 9394-03, which was passed on
February 10, 2003:
A. The area is comprised of parcels that are either unimproved or contain only one (1)
or two (2) family dwellings designed for up to four (4) families, including accessory
buildings for those dwellings; or
B. Any dwellings in the area are not permanently occupied and are:
i. the subject of an order issued under IC 36-7-9; or
ii. evidencing significant building deficiencies; or
C. Parcels of property in the area:
i. have been sold and not redeemed under IC 6-1.1-24 and IC 6-1.1-25; or
ii. are owned by a unit of local government; or
D. A significant number of dwelling units within the area are not permanently
occupied or a significant number of parcels in the area are vacant land; or
E. A significant number of dwelling units within the area are:
i. the subject of an order issued under IC 36-7-9; or
ii. evidencing significant building deficiencies; or
F. The area has experienced a net loss in the number of dwelling units, as documented
by census information, local building and demolition permits, or certificates of
occupancy, or the areas are owned by Indiana or the United States; or
G. The area (plus any areas previously designated under this subsection) will not
exceed ten percent (10%) of the total area within the Council's jurisdiction.
SECTION III. The Common Council also hereby determines and finds the following:
A. That the description of the proposed redevelopment meets the applicable standards
for such development.
B. That the estimate of the value of the redevelopment is reasonable for projects of this
nature;
C. That the other benefits about which information was requested are benefits that can
be reasonably expected to result from the proposed described redevelopment; and
D. That the totality of benefits is sufficient to justify the requested deduction, all of
which satisfy the requirements of Indiana Code 6-1.1-12.1-3.
E. The deduction will not be allowed unless the dwelling is rehabilitated to meet local
code standards for habitability.
F. The deduction will not be allowed unless the dwelling rehabilitation is completed
within five (5) calendar years from the date of the adoption of this Resolution by the
Common Council.
2
SECTION IV. The Common Council hereby confirms its Declaratory Resolution designating
the area described herein as a Residentially Distressed Area for the purposes of tax abatement.
Such designation is for Real property tax abatement only and is limited to five (5) calendar years
from the date of adoption of the Declaratory Resolution by the Common Council.
SECTION V. The Common Council hereby determines that the property owner is qualified for
and is granted Real property tax deduction for a period of five (5) years, and further determines
that the petition complies with Chapter 2, Article 6, of the Municipal Code of the City of South
Bend and Indiana Code 6-1.1-12.1 et sea.
SECTION VI. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approval by the Mayor.
Member of the Common Council
NOT AP?30V~i`
ADOPTED ~, ~-g -~~-~ 3
OC. ~ ~~ ~~.;i~
CITY CLEt2:<, S'?. BEND, IN.
1200 COUNTY-CI'T'Y BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY ~ ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
September 29, 2010
Council Member Timothy Rouse, Chairperson
Community & Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Residential Real Property Tax Abatement Petition for:
J. Nicholas and Diane Entrikin
Dear Council Member Rouse:
Please find attached the Department of Community & Economic Development's report on a residential
real property tax abatement petition submitted by J. Nicholas and Diane Entrikin to build asingle-family
home at 1016 Notre Dame Avenue. Also attached is a copy of the petition, Statement of Benefits form,
and supporting information.
The report contains the department's findings relative to the above petition. The petitioner proposes to
build asingle-family home at a cost of approximately $400,000. The project meets the qualifications
fora (5) five-year real property tax abatement. The petitioner will be available to meet with the
Committee on Monday, October 25, 2010.
Should you or any of the other Council members have any questions concerning the report, or need
additional information, please feel free to call me at 235-5835.
Sincerely,
// ~
~i~ ~ f ~~
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeffrey Gibney
Don Inks
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SC PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELIZAeErx LEONARD
EAX: 574/235-9697 574/235-9371
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDL4NA 46601-1830
PxoNE574/235-9371
Fnx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY BL ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
TAX ABATEMENT REPOR T
TO: SOUTH BEND COMMON COUNCIL
FROM: BOB MATHIA
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
ENTRIKIN, J. NICHOLAS & DIANE
DATE: September 29, 2010
On September 27, 2010, a petition for residential tax abatement consideration for real property located at
1016 Notre Dame Avenue was filed with the City Clerk by J. Nicholas and Diane Entrikin. Pursuant to
Chapter 2, Article 6, Section 2-77.1 of the Municipal Code of the City of South Bend, this petition was
referred to the Department of Community and Economic Development for purposes of investigation and
preparation of a report determining whether the area qualifies as a Residentially Distressed Area pursuant to
I.C.6-1.1-12.1 and whether all zoning requirements have been met.
The Department of Community and Economic Development has reviewed the petition (a copy of which is
attached), investigated the area, and makes the following report.
PROJECT DESCRIPTION
Nicholas and Diane Entrikin intend to construct an approximate 2,300 square foot, single-family home as
their primary residence. The home will have three bedrooms, two and one-half bathrooms, a great room, a
dining room, first floor laundry, two car garage and large front porch. The lower level will have a rec.
room, bed room and bathroom. The project is part of the Notre Dame Housing Program and as such will
follow the design specifications and standards required by that program. The cost of the home is estimated
to be approximately $400,000. Total taxes to be abated during the (5) five-year abatement period are
estimated at $1,893. Total taxes to be ~ai_d_ during the (5) five-year abatement period are estimated at
$20,544.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 5741235-9371 ELIZABETH LEONARD
FAX: 5741235-9697 574/235-9371
South Bend Common Council
RE: Enlrikin, J. Nicholas & Diane
September 29, 2010
Page 2
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has not been associated with
or been granted any previous tax abatements.
2. The Building Commissioner has reviewed this petition and finds the property to be properly zoned for
the proposed project.
3. A review of the South Bend Redevelopment designation areas finds that the property is located in the
Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area; therefore,
approval of the tax abatement petition by the South Bend Redevelopment Commission is required. In
addition, it must be noted that the property is not located within the Northeast Neighborhood's
residential TIF area.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the
qualifications fora (5) five-year residential tax abatement under Section 2-77.1, Single Family
Residential Construction.
5 YEAR
29-Sep-10
ENTRIKIN. J. NICHOLAS ~ DIANE
South Bend Portage Township Residential Real Property Tax Abatement Schedule*
Estimated Project Cost:
Assessed Value:
STRUCTURE (% AV of cost) 85.0%
LAND Value 10 000
Gross Assessed Value
Less Mortgage Exemption
Less Homestead Deduction
Less Supplemental Homestead Deduction
Base Assessed Value
$400,000.00
Total Taxes Tax Abated** Tax Paid***
340,000.00 340,000.00 340,000.00
10,000.00 N/A N/A
350,000.00 340,000.00 340,000.00
(3,000.00) (3,000.00) (3,000.00)
(45,000.00) (45,000.00) (45,000.00)
__(106,750.00) (106,750.00) (106,750.00)
195, 2 50.00 185, 2 50.00 185, 2 50.00
Less Maximum Abatement Deduction
Less Non-Abated Amount
Plus Land Assessed Value
Net Assessed Value
Prooerty Taxes:
Assume constant tax rate of
N/A N/A (74,880.00)
N/A (110,370.00) N/A
N/A N/A 10;000.00
195,250.00 74,880.00 120,370.00
4.4598% 4.4598% 4.4598%
Gross Tax (tax rate x net assessed value) 8,707.76 3,339.50 5,368.26
Less State & County Homestead Credit: 18.6246% (1,621.79) (621.97) (999.82)
Tax Due Before Circuit Breaker 7,085.97 2,717.53 4,368.44
Less Circuit Breaker Credit (2,598.59) (2,338.86) (259.73)
Net Tax 4,487.38 378.67 4,108.71
Circuit Breaker Cap
Circuit Breaker
Debt Service
Circuit Braker Cap
1.0000% 3,500.00 3,400.00 3,500.00
0.5057% 987.38 378.67 608.71
4,487.38 3,778.67 4,108.71
Net Total
Assessed Taxes Tax Tax
Year Value Due Abated Paid
1 195,250.00 4,487.38 378.67 4,108.71
2 195,250.00 4,487.38 378.67 4,108.71
3 195,250.00 4,487.38 378.67 4,108.71
4 195,250.00 4,487.38 378.67 4,108.71
5 195,250.00 4,487.38 378.67 4,108.71
5 year totals: 22,436.90 1,893.34 20,543.56
*This schedule is for estimation purposes only and assumes constant tax rates. The true tax values
will ultimately be determined by the actual assessed valuation and the then current tax rates.
**Tax Abated is capped at $74,880 of assessed value of structures only and does not include land
assessed value.
***Tax Paid is calculated using the difference between actual assessed value of structure and
maximum abated portion of $74,880 and adding back the land assessed value.
ESTIMATED TOTAL TAX REVENUE
ENTRIKIN, J. NICHOLAS & DIANE
LAND* BUILDING" TOTAL
Year 1 $303 $3,805 $4,108
Year 2 $303 $3,805 4,108
Year 3 $303 $3,805 4,108
Year 4 $303 $3,805 4,108
Year 5 $303 $3,805 4,108
Total $1,515 $19,025 $20,540
'Current tax levy
**Additional tax revenue from new investment
EXHIBIT A
LEGAL DESCRIPTION
Address: 1016 Notre Dane Avenue
Legal Description:
Lot "A" Frances Street Minor Subdivision a part of the Northeast Quarter of Section 1,
Township 37 North, Range 2 East (Being Lot 92 of Plat of Sorins Second Addition to Lowell,
Now the City of South Bend) Portage Township, St. Joseph County, Indiana. `
Tax Key Number: 18-5105-3672
SHEET ~ OF
LOT "A"
FRANCES STREET MINOR SUBDIVISION
A PART OF THE NORTHEAST QUARTER OF
SECTION 1, TOWNSHIP 37 NORTH, RANGE 2 EAST
(BEING LOT 92 OF PLAT OF SORINS SECOND ADDITION TO LOWELL, NOW THE CITY OF SOUTH BEND)
PORTAGE TOWNSHIP, ST. JOSEPH COUNTY
INDIANA
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NOTES:
1. FRONT & SIDE YARD SETBACK DIMENSIONS SHOWN ARE MEASURED TO HOUSE FOUNDATION.
2. CONTRACTOR SHALL NOT PROCEED WITH ANY EXCAVATION OR CONSTRUCTION ACTIVITY UNTIL ALL
PERMITS ARE OBTAINED.
3. THIS DRAWING DEPICTS THE APPROXIMATE LAYOUT OF THE LOT. FOR ACTUAL DIMENSIONS, SEE TH
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RECORDED FINAL PLAT.
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4. WHEN BUILDING A STRUCTURE BELOW GRADE, SPECIAL CONSIDERATION SHOULD BEG ~0'aF~~" ~.
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CONDITIONS, FOUNDATION DESIGN, ETC. SUCH CONSIDERATION IS BEYONO, AND NOT AR bi"; t1E''f
SCOPE OF THIS PLAN.
5. PROPOSED LAYOUT SUBJECT TO APPROVAL OF PENDING VARIANCES FOR FRONT AND R R SAP
SETBACKS.
THE STRUCTURE IS APPROX. 16 'FROM THE R/W ~l
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THE STRUCTURE IS APPROX. 'FROM THE CURB
DRAWING FOR BUILDING PERMITS ONLY ~~ ABONMARCHE CONSULTANTS, L.L.C.
750 Lincoln Way East Fort Wayne, Indiano
PREPARED FOR: DEVON CUSTOM HOMES South Bend. Indiano 46601 Benton Harbor, Michigan
(574) 232-8700 Manistee, Michigan
FAX: (574) 251-4440
STAKED ON:
/ LAND SURVEYING / PLANNING / CONSTRUCTION SERVICES
ENGINEERING
DRAWN BY: JLM DATE: 09/13/10 DWG NAME: ZONING: RESIDENTIAL
CHECKED BY: SCALE: 1"=30' SEC. 1-T37N-R2E SEPTIC APP. #: N/A
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